Infosys founder Narayana Murthy pledges turnaround within three years

BANGALORE, June 15 Sat Jun 15, 2013 1:02pm EDT

BANGALORE, June 15 (Reuters) - Infosys, India's second-largest software services provider, will take the tough, painful decisions needed to return the company to a "desirable" state in 36 months, founder N.R. Narayana Murthy said on Saturday.

The company will "re-focus on building a more predictable earnings model," Murthy said at the company's annual meeting, after shareholders accepted a proposal by the board to bring him back as executive chairman.

Earnings' predictability had made Bangalore-based Infosys an investor darling and the $108-billion Indian IT industry's bellwether.

Over the last two years, however, the company has turned in a string of disappointing results as it struggled with a strategy to shift to higher value-added services by offering consultancy and software products and solutions.

Murthy committed to spending more on the company's staff of more than 150,000, revitalising his salesforce with incentives, and in a rare public gesture, offered flexibility on pricing to win large contracts.

The 66-year old founder, who returned on June 1, had stepped down as CEO 11 years ago. He is the company's second-largest shareholder.

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
goestoshow wrote:
That pesky quality thing, or lack thereof kicking them in the butt.

Jun 15, 2013 4:32pm EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

A tourist takes a plunge as she swims at Ngapali Beach, a popular tourist site, in the Thandwe township of the Rakhine state, October 6, 2013. Picture taken October 6, 2013. REUTERS/Soe Zeya Tun (MYANMAR - Tags: SOCIETY) - RTR3FOI0

Where do you want to go?

We look at when to take trips, budget considerations and the popularity of multigenerational family travel.   Video